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Indonesia - MARKET ACCESS
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Import regulations and customs duties
Regulations
269 products are subjected to a very complex system of import licences. A wide range of products such as explosives, weapons, ammunitions, audio discs, videos, films, radios, colour photocopiers, some medicines and foodstuffs are forbidden to import. The licencing system classifies the goods in 3 categories, according to the type of importer i.e producer importer, registered importer, single agent or commercial. The other products can be imported without restriction.
Customs duties
Indonesia uses the Nomenclature of the Harmonized System of Name and Codification of the Goods. Tariffs are generally ad valorem and calculated on the CIF value. The non balanced taxes is on an average of a 12.2 %, varying from 5 to 40 %. The imports are subjected to a VAT of 10 %, luxuries to a tax ranging from 10 to 35 % of the CIF value of the goods. Some products are subject to a surcharge of 5 to 25 %. Indonesia is a part of the ASEAN, free trade area.
Distribution
The main zones of the country (where most companies are located) are: Jakarta and suburbs, Surabaya and Bandoeng in Java, and Medan in Sumatra.
The marketing and the import (wholesaler or retailer) are reserved for the Indonesian companies. The industrial companies mainly capitalized by foreign investors are authorized to sell in the Indonesian market as wholesalers; these companies can import freely if their exports are superior to their imports. Generally, the industrial importers are not specialized and import a whole range of additional products. The foreign companies have a right to have a representative office in Indonesia, but sales people cannot directly sell; they can only promote their product. Without any Indonesian Desk, a good agent is necessary to export to the country.The Indonesian road network consists of 372 414 km, of which 50 % are asphalted and only 35 % in good condition. The infrastructure is better on the islands of Java, Bali, Madura and in the North of Sumatra than on the rest of the country. The network is State owned. It extends over 5 100 km in Java and 1 300 km in three separate ways in Sumatra. Only 100 km of tracks are electrified. Jakarta is connected with Bogor, Tanggerang and Bekassi by urban train.It is the privileged way of transporting goods in the country. The main ports are those of Jakarta ( Tanjung Priok) and Surabaya ( Tanjung Perak). 69 % of the imports are handled by these ports. The other main ports are those of Belawan, Pakanbaru / Dumai, Bontang and Ujung Pandang.
The Business to Consumer (B to C) market
The international airports are those of Jakarta ( Sukarno-Hatta) and Yogyarta in Java, Medan and Pakanbaru ( Sumatra), Pontianak and Banjarmasin ( Kalimantan), Denpasar to Bali and Kupang in Timor. The air transport is very much developed.
The Business to Business (B to B) market
The standards are established by the BSN (Badan Standardisasi Nasional), a governmental organization under the Ministry of Trade. Of the current 200 standards, only some of them are compulsory for the imports. The Dewaz Standardisasi Nasional is in charge of introducing the Indonesian standards. Customs control the goods (price and quality) according to their own system.
Transportation of goods
By road
By rail
Patent
By sea
20 years
Standards
Patents and brands
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Last modified in
January 2004
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